Africa-Press – Zambia. Economist Chibamba Kanyama said that he does not see any forgiveness for the Eurobond debt, stating that the only viable thing is to restructure the debt. Mr. Kanyama added that the possible debt forgiveness Zambia can get is from lending institutions and not the private sector.
Mr. Kanyama said that a major component of the country’s debt is owed to private creditors, Eurobond holders, Chinese Creditors, Commercial Banks within the region, and individuals.
Mr. Kanyama further said that though it is possible for the Chinese government to consider payment of a portion of the debt owed to it, such a probability cannot come from commercial creditors.
Mr. Kanyama’s sentiments were echoed by Financial Analyst Trevor Hambayi who said that commercial debt is very difficult to cancel because of specific conditions that come with such debt.
Mr. Hambayi said that there is a need for Zambia to sort out governance structures that must be embedded in the Republican Constitution to ensure the country does not unnecessarily borrow.
Mr. Hambayi said that the dynamics are different from 2008 when Zambia got debt forgiveness, as, at that time, the debt forgiveness received was on account of it being Multilateral and Bilateral loans.
Adding his voice to the debate, Economist Lubinda Habazooka advised those advocating for the debt cancellation to call for the cancellation of debt that has been acquired outside the country. Lately, the CSO debt alliance called for the cancellation of up to 60% of Zambia’s debt.
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